OREANDA-NEWS. December 23, 2015. Fitch Ratings has affirmed the notes issued by various Sierra Timeshare Receivables transactions, as detailed at the end of this commentary.

KEY RATING DRIVERS
The rating affirmations reflect the ability of the transactions' credit enhancement (CE) to provide loss coverage consistent with the current ratings. The Stable Outlook designations for all classes of notes reflect Fitch's expectation that the notes will remain sufficiently enhanced to cover stressed loss levels consistent with the current ratings for the next 12-18 months.

Fitch will continue to monitor economic conditions and their impact as they relate to timeshare asset-backed securities and the trust level performance variables and update the ratings accordingly.

RATING SENSITIVITIES
Unanticipated increases in the frequency of defaults could produce cumulative gross default (CGD) levels higher than the base case and would likely result in declines of credit enhancement and remaining default coverage levels available to the notes. Additionally, unanticipated increases in prepayment activity could also result in a decline in coverage. Decreased default coverage may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage.

At the time of initial rating, Fitch conducted sensitivity analysis stressing each of the transaction's initial base case CGD and prepayment assumptions by 1.5x and 2.0x and examining the rating implications on all classes of issued notes. The 1.5x and 2.0x increases of each transaction's base case CGD and prepayment assumptions represent moderate and severe stresses, respectively, and are intended to provide an indication of the rating sensitivity of notes to unexpected deterioration of a trust's performance.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

For Fitch's initial Key Rating Drivers, Rating Sensitivities and the full detail analysis for these transactions, please see their New Issue reports titled, ''Sierra Timeshare 2011-1 Receivables Funding, LLC (US ABS) dated Mar. 13, 2011,' "Sierra Timeshare 2012-1 Receivables Funding, LLC (US ABS) dated Mar. 12, 2012, "Sierra Timeshare 2013-1 Receivables Funding, LLC (US ABS)" dated Mar. 11, 2013,", "Sierra Timeshare 2014-1 Receivables Funding, LLC (US ABS)" dated Mar. 10, 2014," and ''Sierra Timeshare 2015-1 Receivables Funding, LLC (US ABS)" dated Mar. 12, 2015," which are available on Fitch's website.

Fitch's analysis of the Representations and Warranties (R&W) of this transaction can be found in 'Sierra Timeshare 2012-1 Receivables Funding, LLC - Appendix,' 'Sierra Timeshare 2013-1 Receivables Funding, LLC - Appendix,' 'Sierra Timeshare 2014-1 Receivables Funding, LLC - Appendix', 'Sierra Timeshare 2015-1 Receivables Funding, LLC - Appendix'. These R&W are compared to those of typical R&W for the asset class as detailed in the special report 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' dated June 12, 2015.

Fitch has affirmed the following ratings:

Sierra Timeshare 2011-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable ;
--Class B notes at 'BBBsf'; Outlook Stable;
--Class C notes at 'BB-sf'; Outlook Stable.

Sierra Timeshare 2012-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable.

Sierra Timeshare 2013-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable.

Sierra Timeshare 2014-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable .

Sierra Timeshare 2015-1 Receivables Funding, LLC
--Class A notes at 'Asf'; Outlook Stable;
--Class B notes at 'BBBsf'; Outlook Stable .